Mergers and acquisitions took a huge hit in 2020. In fact, M&A was down 57% in 2020 when compared to 2019. But thankfully, signs are pointing towards a gradual recovery into 2021 and beyond.
What do you need to focus on if you’re looking to get acquired?
First, you need to be able to answer two questions: “What is the value of our organization, and why are we wanting to sell?” On top of those basics, Steven Nutt, CFO of Community National Bank & Trust of Texas had a few pieces of advice for sellers on the most recent episode of CFO Weekly.
Number one, enhance your asset quality. Buyers are looking to really understand the asset quality of their targets, and cleaning yours up may make the difference.
Number two, limit your contracts. Contracts typically come with enormous IT costs, and they can be extremely hard to get out of, which may turn a buyer off.
And third, take a look at your people.
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